Ecopetrol Preps for Share Sale Period

State-controlled Colombian oil company Ecopetrol is set to offer shares in its long-awaited equity follow-on beginning July 27. The details about the pricing and size of the local transaction are to be announced at or before the beginning of the order period, scheduled for July27-August 17. The biggest question is the size of the deal after the government changed its plans several times over the past year or so. The state-controlled oil company is able to sell up to 9.9%, though the expectation is for much less, perhaps as little as 1.0%. A 1% stake would still create a COP1.48trn ($838m) deal, at Wednesday’s COP3,650 close. Local bankers expect 2%-4%. Credit Suisse, JPMorgan and Bancolombia are expected to manage the sale after being mandated as bookrunners on Ecopetrol’s previous transaction.